Economics
Treasuries Rally, Dollar Falls With Stocks as Fed Holds Rates
- Yellen sees risk that global economic slowdown will spread
- Policy senstive 2-year Treasury yields slide most since 2009
Most Important Two Minutes of the Fed News Conference
This article is for subscribers only.
Treasuries rallied and the dollar tumbled to a three-week low after the Federal Reserve decided against raising interest rates. U.S. stocks retreated as the decision fueled concern that slowing global growth could hamper the domestic economy.
The Standard & Poor’s 500 Index erased gains after Fed Chair Janet Yellen indicated that global risks overshadowed signs of strength in the U.S., where inflation remains stubbornly slow. Two-year Treasury rates slid the most since quantitative easing was announced in 2009, while the greenback sank to a three-week low. Emerging-market equities climbed.